DIVORCE AND MORTGAGE
Divorce and Your Mortgage: What Happens to the House and Home Loan?
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Brady Webb
Divorce involves a lot of financial decisions, but if you own a home together, deciding what happens to the house and mortgage can be one of the biggest.
Who keeps the home? Can that person afford it? How does one spouse get removed from the mortgage? What happens to the equity?
These are questions that should ideally be answered before the divorce agreement is finalized, not afterward.
As a Certified Divorce Lending Professional (CDLP) and experienced Mortgage Broker, I help divorcing homeowners understand how their decisions may affect their mortgage options so they can make informed choices before signing the final agreement.
Keeping the House Doesn't Remove Your Ex From the Mortgage
This is one of the most common misunderstandings about divorce and mortgages.
Can You Qualify to Keep the Home?
Before agreeing to keep the marital home, it's important to determine whether the financing actually works.
A mortgage professional may need to consider:
- Income and employment
- Credit and existing debts
- Child support or alimony
- Current mortgage balance
- Property taxes and homeowners insurance
- HOA or condominium expenses
- Available home equity
- Any required equity buyout
Wanting to stay in the home and being financially positioned to keep it can be two very different things.
The goal is to determine whether keeping the house is both affordable and achievable before the divorce is finalized.
What About Buying Out Your Spouse's Equity?
If one spouse keeps the home, the divorce settlement may require that person to compensate the other spouse for their share of the equity.
For example, suppose a home is worth $500,000 and has a $300,000 mortgage. At first glance, there appears to be approximately $200,000 in equity.
How that equity is ultimately divided is a matter for the divorcing parties and their legal and financial professionals.
From the mortgage side, however, there's another important question:
How will the agreed-upon equity buyout be funded?
Refinancing may be one option. Certain divorce-related equity buyouts may also receive different mortgage treatment than a typical cash-out refinance when specific loan-program requirements are met.
How the transaction is structured can matter, which is another reason to discuss the mortgage before the settlement language is finalized.
Should You Keep the House After Divorce?
Keeping the marital home isn't always the best financial decision.
You may have an attractive interest rate or an emotional connection to the property, but the mortgage rate is only one part of the equation.
You also have to consider the monthly mortgage payment, property taxes, insurance, maintenance, HOA expenses, potential equity buyout, and your income and expenses after the divorce.
Sometimes keeping the house makes sense. In other situations, selling the property and allowing both spouses to move forward separately may be the better financial option.
Instead of simply asking:
"How do I keep my house?"
Consider asking:
"Does keeping this house make sense for my financial future?"
Why Work With a Certified Divorce Lending Professional?
A Certified Divorce Lending Professional (CDLP) has specialized education focused on the intersection of divorce, real estate, and mortgage financing.
My role isn't to provide legal or tax advice. Instead, I help evaluate the mortgage side of the equation and, when appropriate, work alongside divorce attorneys, mediators, financial professionals, and real estate agents.
The goal is to identify potential mortgage issues early, while there may still be time to address them.
Before You Sign, Let's Review the Mortgage
If you're going through a divorce and a home or mortgage is involved, don't wait until everything is finalized to find out whether the mortgage plan works.
Whether you're considering keeping the marital home, refinancing, buying out your spouse's equity, selling the property, or preparing to purchase another home, understanding your mortgage options early can help you make a more informed decision.
As a Mortgage Broker and Certified Divorce Lending Professional (CDLP), I help homeowners navigate mortgage and real estate decisions during and after divorce. I currently serve clients in Florida, Indiana and Kentucky.
Before you sign the final agreement, let's make sure the mortgage plan works.
Ready to Discuss Your Options?
If divorce is affecting your home or mortgage, let's talk. We can review your situation, discuss potential mortgage options, and help you understand what may be possible before important decisions are finalized.
Brady Webb | Certified Divorce Lending Professional (CDLP)
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Copyright © 2026 American Mortgage Solutions NMLS: 1364/MB73346
Licensed in: FL, KY, IN
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Copyright © 2026 American Mortgage Solutions NMLS: 1364/MB73346
Licensed in: FL, KY, IN
FL-MBR1574, KY-MB73346
American Mortgage Solutions follows all Equal Housing laws. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.
These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners. For information directly from HUD/FHA, visit https://www.hud.gov/guidance For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/ For information directly from the USDA, visit http://www.usda.gov/wps/portal/usda/usdahome?navid=GRANTS_LOANS